Post Utme Veritas University 2019 Economics Question 26

Practice objective / multiple choice question 26 from the 2019 Post Utme Veritas University Economics examination.

Post Utme Veritas University 2019 Economics Objective / Multiple Choice
Question 26 POST_UTME_VERITAS_UNIVERSITY • 2019 • ECONOMICS • objective

The government of Nigeria has implemented a policy to increase agricultural production by providing subsidies to farmers. However, the policy has led to an increase in the price of agricultural products. U\sing the concept of opportunity \cost, explain why the government's policy may not be effective in increa\sing agricultural production.

Answer Options

Correct Answer A. The policy has increased the opportunity \cost of farming, making it less attractive to farmers.
B. The policy has reduced the opportunity \cost of farming, making it more attractive to farmers.
C. The policy has had no effect on the opportunity \cost of farming.
D. The policy has increased the price of agricultural products, making them less competitive in the market.
Correct Answer
A
Correct Option:
The policy has increased the opportunity \cost of farming, making it less attractive to farmers.

About This Question

This is Post Utme Veritas University 2019 Economics Question 26. It is one of the objective questions from the 2019 Post Utme Veritas University Economics examination.

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